PRESIDENT BUSH: Good day. I'm pleased to welcome Prime Minister
Ariel Sharon back to the White House. I think you said this is our
eighth meeting --

PRIME MINISTER SHARON: Eighth meeting here.

PRESIDENT BUSH: Eighth meeting in Washington. That should
indicate to everybody that our nations have a deep and abiding
friendship.

America is firmly committed to the security of Israel as a Jewish
state, and we are firmly committed to the safety of the Israeli
people. We have now a tremendous opportunity to add to Israeli
security and safety, and add to the hopes of the average Palestinian
citizen, by making tangible progress towards two states living
side-by-side in peace.

Last month's Red Sea summits in Egypt and Jordan gave momentum to
that progress. I'm encouraged by the positive steps that Israel has
taken since then to further the cause of peace, including prisoner
releases. Prime Minister Sharon is now meeting regularly with Prime
Minister Abbas, and that's positive. Israeli and Palestinian cabinet
and security officials are meeting, as well.

Israel has recently taken steps to make it easier for Palestinians
to work in Israel, and to travel to their jobs and schools and
families. And I thank the Prime Minister for these important actions.

Much hard work remains to be done by Israelis and Palestinians, and
by their neighbors. If we are ever to reach our common goal of two
states living side-by-side in peace and security, leaders must assume
responsibility. The Prime Minister is assuming responsibility.

All parties agree that a fundamental obstacle to peace is
terrorism, which can never be justified by any cause. Last month in
Aqaba, Prime Minister Abbas committed to a complete end to violence and
terrorism. The Palestinian Authority must undertake sustained,
targeted and effective operations to confront those engaged in terror,
and to dismantle terrorist capabilities and infrastructure. We're
determined to help Prime Minister Abbas as he works to end terror, and
establish the rule of law that will protect Israelis and Palestinians
alike.

Today, I urge Arab states to follow through on the pledges made in
Sharm el-Sheikh, to actively contribute to these efforts, and to reject
the culture of extremism and violence from whatever source or place.
The rise of a peaceful Palestinian state and the long-term security of
the Israeli people both depend on defeating the threat of terrorist
groups and ending incitement and hatred.

In our discussions, I encouraged the Prime Minister to take further
steps to improve the daily conditions faced by Palestinians. Israelis
and Palestinians deserve the same chance to live normal lives, free
from fear, free from hatred and violence, and free from harassment. I
also urged the Prime Minister to carefully consider all the
consequences of Israel's actions as we move forward on the road to
peace.

The United States of America will continue to act in the interest
of peace. We will continue to be a firm warrior against terrorism
wherever it is found. We will encourage all parties to keep their
promises and monitor the progress that is made. We will also help the
parties find solutions to legitimate concerns. As we head down the
road to peace, my commitment to the security of Israel is unshakable,
as is the enduring friendship of our countries.

I want to thank Ariel for all he's done to contribute to that
friendship, for his leadership and his willing to make tough decisions
in the cause of peace.

Mr. Prime Minister.

PRIME MINISTER SHARON: Mr. President, it is a great privilege for
me to be here at the White House for the eighth time. I am always
pleased to visit, and feel that I am among friends, true friends of the
state and the people of Israel.

Mr. President, I congratulate you on the impressive victory in the
Iraqi campaign and for removing Saddam Hussein from power, one of the
most ruthless and tyrannical leaders in history. For 30 years, the
free world has witnessed the recklessness and brutality of this
dictator. Only you, Mr. President, have shown the courage,
determination and leadership needed to spearhead the successful
campaign to oust this ruthless, merciless despot, his dynasty an evil
regime.

For the first time since World War II, the freedom and
peace-seeking democratic world had the wisdom to go after murderers and
evil rulers and bring them to justice. I have no doubt, Mr. President,
that thanks to you, any villain in any corner of the world knows that
the long arm of justice will reach them. So many will owe their lives
to you and the great nation of America.

I'm confident, Mr. President, that the lessons learned by the
nations of the world and the region on the courageous action of the
United States and Iraq will serve to advance the peace process between
Israel and the Palestinians and the entire Arab world.

Your later statement regarding the threats emanating from Syria and
Iran will once again -- the seriousness of your intentions to continue
leading the fight against terror. It must be made clear to these
countries that their evil deeds cannot continue. There can be no
compromise with terror and evil.

The people of Israel, Mr. President, are greatly thankful and
appreciative of your activity, unrelenting commitment to Israel's
security and the safety of its citizens, and your determination to
advance the peace process between us and the Palestinians.

We are currently at an important juncture in our relations with our
Palestinian neighbors. While relative quiet currently prevails in
Israel, terror has not yet completely ceased. This relative calm was
achieved, first and foremost, through the uncompromising activity of
the Israeli security forces, and as a result of your personal effort
and the actions taken by the United States among Arab and European
countries.

We are thankful for every hour of increased quiet and less
terrorism, and for every drop of blood that is spared. At the same
time, we are concerned that this welcome quiet will be shattered any
minute as a result of the continued existence of terror organizations
which the Palestinian Authority is doing nothing to eliminate or
dismantle.

Mr. President, I am confident that you, as the leader of the free
world in this war against terror, will act to ensure that the
Palestinians put a complete stop to the threat of Palestinian terrorism
so that it will never rear its head again. I wish to move forward with
a political process with our Palestinian neighbors. And the right way
to do that is only after a complete cessation of terror, violence, and
incitement, full dismantlement of terror organizations, and completion
of the reform process in the Palestinian Authority.

We had a useful talk today, where we examined ways to advance the
peace process between us and our Palestinian neighbors. In this
context, a number of issues came up: the security fence, which we are
forced to construct in order to defend our citizens against terror
activities; the removal of unauthorized outposts and the freezing of
settlements in Judea and Samaria.

I listened to your statement on this subject, and assured you, Mr.
President, that I would address then the security --

PRESIDENT BUSH: It's stuck.

PRIME MINISTER SHARON: As you can see, we need your help.
(Laughter.) The security fence will continue to be built, with every
effort to minimize the infringement on the daily life of the
Palestinian population. Unauthorized outposts will be removed, as
required in a law-abiding country. We'll continue to discuss all these
issues both directly and through our bureaus, which maintain close
contact.

Mr. President, we also discussed a series of issues which could
serve to promote the peace process. In a statement published on my
behalf last Friday, we listed a long series of steps to accommodate the
Palestinians. If calm prevails and we witness the dismantlement of
terror organizations, Israel will be able to take additional -- to take
additional steps.

I mean to thank you again, George, for your friendship and
understanding toward the state and people of Israel, and for your
contribution and personal involvement in the effort to turn the Middle
East into a place where the peoples of the region can live in peace and
security, and guarantee a better life for our children and generations
to come.

Thank you, George.

Q Mr. President --

PRESIDENT BUSH: Hold on a second, please. I'll call upon two
members of our press corps. We'll alternate. First, Barry.

Q Mr. President, will the decision to not declassify the
entire 9/11 report affect relations with Saudi Arabia, do you think?
Might it have an impact on what they are doing to counter terrorism?
Do you have any qualms?

PRESIDENT BUSH: About not declassifying? No, absolutely have no
qualms at all, because there's an ongoing investigation into the 9/11
attacks and we don't want to compromise that investigation. If people
are being investigated, it doesn't make sense for us to let them know
who they are.

Secondly, we have an ongoing war against al Qaeda and terrorists,
and the declassification of that part of a 900-page document would
reveal sources and methods that will make it harder for us to win the
war on terror. Now, perhaps at some point in time down the road, after
the investigations are fully complete, and if it doesn't jeopardize our
national security, perhaps we can declassify the 27 of the hundreds of
pages in the document. But it makes no sense to declassify when we've
got an ongoing investigation that could jeopardize that investigation.
And it made no sense to declassify during the war on terror because it
would help the enemy if they knew our sources and methods.

Q Mr. President, what do you expect Israel to do in practical
terms in regarding the separation fence that you call the wall? Due to
the fact that this is one of the most effective measure against
terrorism, can you clarify what do you oppose -- the concept of the
separation fence, or only its roots?

And with your permission -- (asks a question in Hebrew.)

PRESIDENT BUSH: -- an international problem. (Laughter.)

Q (continues to ask in Hebrew.)

PRESIDENT BUSH: Me? Okay. First, the most effective way to fight
terror is to dismantle terrorist organizations. I fully recognize
that. And we will continue to work with all parties to do just that.
I mean, I fully understand that the most effective campaign to enhance
the security of Israel, as well as the security of peace-loving people
in the Palestinian territories, is to get after organizations such as
Hamas, the terrorist organizations that create the conditions where
peace won't exist. And therefore, I would hope in the long-term a
fence would be irrelevant.

But, look, the fence is a sensitive issue, I understand. And the
Prime Minister made it very clear to me that it was a sensitive issue.
And my promise to him is we'll continue to discuss and to dialogue how
best to make sure that the fence sends the right signal that not only
is security important, but the ability for the Palestinians to live a
normal life is important, as well.

Q Why do you criticize, Mr. President --

PRESIDENT BUSH: No, no, no. Hold on. Not you. Steve. Maybe
some other time, but not now.

Q All right.

Q Thanks, sir. How are both of you going to get the
Palestinian militants to extend the cease-fire?

PRESIDENT BUSH: Do what now?

Q How are both of you going to get the Palestinian militants
to extend the cease-fire?

PRESIDENT BUSH: Let me -- look, the important message that should
have come out of the meeting with Prime Minister Abbas, and, of course,
with Prime Minister Sharon, is that the -- those who want to destroy
the peace process through terrorist activities must be dealt with.
There will be no peace if terrorism flourishes. There's no peace.
It's a contradiction in terms. Terrorists are against peace.
Terrorists kill innocent life to prevent peace from happening. The way
to make sure peace happens is for all of us to work to dismantle those
who would like to kill. Those are called terrorists.

And the positive news is that Prime Minister Abbas made a public
declaration that we would work together to dismantle terrorist
organizations. And that's exactly what's going to happen. For those
who want peace -- I mean, all around the world have got to understand
very clearly, if you're interested in peace in the Middle East, then
all of us must work together to dismantle terrorist organizations, to
cut off money to terrorist organizations, to prevent the few from
damaging the aspirations of the many.

Q Mr. President, why do you expect any government to set free
Palestinian prisoners while you don't order to set free the Israeli
civilian, Jonathan Pollard?

PRESIDENT BUSH: Yes, well, I said very clearly at the press
conference with Prime Minister Abbas, I don't expect anybody to release
somebody from prison who will go kill somebody. That doesn't make any
sense. I mean, if we're trying to fight off terror, and we're
interested in a peaceful settlement, it doesn't make any sense to
release somebody who is going to get out of prison and start killing.

I do hope that the Prime Minister continues to work with the
Palestinian Authority to release those prisoners that won't create the
conditions of terror. And I believe that Prime Minister Abbas wants
peace. I know that the -- his cabinet is interested in developing the
institutions necessary for a Palestinian state to emerge in a peaceful
way.

I've been impressed by the Finance Minister of the Palestinian
Authority who's willing to put the Palestinian budget up on the web
page. In other words, he believes in transparency. And the reason I
bring that up is that I also know that those same Palestinians who are
working for the institutions necessary for a peaceful state to evolve
know that terrorists would like to derail those plans, and therefore,
are willing to work to rout out terrorist organizations. And, look, we
don't want to put people back into society that will make that task
more complicated.

Listen, thank you all very much.

Q Mr. President, Senator Shelby says 95 percent of the
redaction has nothing to do with sources and methods, sir. Is he
wrong?